They say that, discrimination is actually the spirit of life insurance. Do you agree with that? Well, let’s take a look at some important factors why this is believed to be essential when it comes to insurance. The main purpose of life insurance is actually spreading the risk. To be able to determine how much should be charged for premium, the event which needs to be insured must be identified as well as the cost involved once it occurred.
For instance, if you are residing near a river bank, you just might expect to owe higher in terms of insurance against flood rather than living miles from the nearby river. Also, the higher the home value as well as its content, the more you have to pay.
The Case of Discrimination
Young women must actually pay similar amount in terms of car insurance like young men, even if they are not usually involved in car accidents. This is exactly the same as not permitting life insurers in taking into account the person’s age whose life needs to be efficiently insured. This only means that to demand a person, say 95 years of age, for a life insurance on same terms as a person who is 25 years of age, even if the possibility of dying is not only great but actually greater.
One word to describe such situation is bonkers. Absurd ruling isn’t it? But it is actually the arrogant as well as sentimental desire of making the world fair enough through law implementation. If insurers are not allowed to categorize the basis of gender, there’s actually no reason to allow people in discriminating the basis of other things as well.
Is it really the Essence of Indemnity?
Discrimination is said to be the essence of appropriate insurance. As a matter of fact, risk can never be properly assessed in the absence of this factor. For sure, this discrimination has its own bigotry in the proper way. But to provide policies indiscriminately by insurance companies is not the essence of this concept, that’s the other way around.
In is nature, insurance is already a necessity for people so that they will be insured and prepared in the future. In the event that a person encounters an accident or any destructive situation, life insurance will make sure that they have enough coverage in order to take care of the financial requirement.
Insurance is indeed a broad subject to tackle in which it needs enough knowledge as well as expertise in order to arrive at a certain decision. The best thing to do when facing discriminations or inequalities in terms of insurance is to consult an expert. This will help you in making proper choices while ensuring your life for the better.
So, if you are having issues with your life insurance, you can get help from someone who knows the ins and outs of the insurance market. It is always important to bear in mind that you need to be sure in order to be insured.